How foreclosure works in Maryland

The notices you will receive in Maryland, in order

1. Notice of Intent to Foreclose

   Sent by the lender by certified and first-class mail at least 45 days before the case is filed

   This notice gives the amount needed to catch up, the name and phone number of someone who can change the loan, and a recommendation to get housing counseling. If you live in the home, it comes with a loss mitigation application and an addressed envelope. Fill out the application and send it back right away, and call a housing counselor.

   Md. Code, Real Prop. § 7-105.1(c)

2. Order to Docket

   Filed in circuit court no sooner than 90 days after the default and 45 days after the notice of intent, whichever is later

   This is the paper that opens the foreclosure case. It must be handed to you or left with a responsible adult at your home, together with a separate notice that explains what it means and where to get help. If no one can serve you after two tries on different days, the lender can mail the papers and post them on the home.

   Md. Code, Real Prop. § 7-105.1(b), (e), (h)

3. Notice to all occupants

   Mailed at the same time the Order to Docket is served

   A separate letter addressed to "all occupants" says a foreclosure has been filed and that a sale may happen any time after 45 days. The envelope reads "IMPORTANT NOTICE TO ALL OCCUPANTS: FORECLOSURE INFORMATION ENCLOSED. OPEN IMMEDIATELY." Do not throw it away.

   Md. Code, Real Prop. § 7-105.11(b)

4. Preliminary or final loss mitigation affidavit

   Comes with the Order to Docket, or the final one is mailed later, at least 30 days before any sale

   A preliminary affidavit means the lender has not finished reviewing you for options, and it comes with a loss mitigation application. A final affidavit means the review is done and explains any denial. The final one starts your 25-day clock to ask for mediation.

   Md. Code, Real Prop. § 7-105.1(e), (h), (i)

5. Request for Foreclosure Mediation form

   Comes with the final loss mitigation affidavit; file it within 25 days

   If you live in the home, file this form with the circuit court and pay the $50 fee, or ask the court to waive it. Mail a copy to the lender's foreclosure attorney. The Office of Administrative Hearings then sends you a notice with the date of your session and the papers you must exchange.

   Md. Code, Real Prop. § 7-105.1(j), (k)

6. Notice of the sale date

   Mailed 10 to 30 days before the sale, and published in a newspaper for 3 weeks

   The person running the sale must mail you the time, place and terms of the sale by certified and first-class mail. The sale is also advertised once a week for 3 weeks in a local newspaper. You can still cure the default up to 1 business day before the sale.

   Md. Code, Real Prop. §§ 7-105.1(o), (p), 7-105.4(c)

7. Notice of report of sale and ratification

   After the auction

   The trustee files a report of sale, and the clerk issues a notice that the sale will be ratified unless someone objects. You have 30 days from that notice to file exceptions. Once the court ratifies the sale, a court auditor reports whether there is money left over or a shortfall.

   Md. Rule 14-305

The legal steps in Maryland

1. Missed payment and the Notice of Intent to Foreclose

   After a missed payment the servicer mails a Notice of Intent to Foreclose by certified and first-class mail. It states the amount needed to catch up and lists free help. The case cannot be filed until 45 days after this notice is sent and 90 days after the default, and most loans are also covered by the federal 120-day wait.

   Md. Code, Real Prop. § 7-105.1(b), (c); 12 C.F.R. § 1024.41(f)

2. The Order to Docket is filed and served

   The lender's attorney files an Order to Docket in circuit court and serves you with a copy. It comes with a preliminary or final loss mitigation affidavit. If you get a preliminary one, the servicer has not finished reviewing you for alternatives.

   Md. Code, Real Prop. § 7-105.1(e), (h)

3. Final loss mitigation affidavit and your mediation request

   The final loss mitigation affidavit comes with a Request for Foreclosure Mediation form. If you live in the home, you have 25 days to file the request with the circuit court and pay a $50 fee, which the court can reduce or waive.

   Md. Code, Real Prop. § 7-105.1(j)

4. Foreclosure mediation

   The Office of Administrative Hearings holds the mediation within 60 days after the court sends over your request. You must attend, and you may bring a housing counselor or a lawyer. The lender's representative must have authority to settle.

   Md. Code, Real Prop. § 7-105.1(k), (l)

5. The foreclosure sale

   The sale is advertised once a week for three weeks, and you must be mailed the time, place and terms of the sale by certified and first-class mail 10 to 30 days before it. You can cure the default and reinstate the loan up to one business day before the sale. The auction is held by the person authorized to make the sale, usually a trustee or attorney.

   Md. Code, Real Prop. §§ 7-105.1(n), (o), (p), 7-105.4(c)

6. Exceptions and ratification

   After the sale you have 30 days from the court's notice of the report of sale to file exceptions. If none are filed, or they are overruled, the court ratifies the sale. Title does not pass to the buyer until then.

   Md. Rule 14-305

7. Audit and eviction

   A court auditor reports whether the sale left a surplus or a shortfall. The buyer must file a motion and get a court judgment awarding possession before the sheriff can evict you. The state regulator says eviction can come as soon as 15 days after ratification.

   Md. Rules 14-102, 14-305

Common questions in Maryland